“All judgments of the small claims division shall be conclusive upon the plaintiff and the defendant and shall be in a form prescribed by the supreme court.” MCL 600.8413. See SCAO Form DC 85, Judgment, Small Claims.
“A judgment must be entered at the time of the entry of the court’s findings, and must contain the payment and stay provisions required by MCL 600.8410(2).” MCR 4.305(A). “A copy of the judgment shall be given in court, delivered, or mailed immediately to each plaintiff and defendant following entry of the judgment.” MCL 600.8410(6). An instruction sheet must be offered to the plaintiff at the same time the copy of the judgment is provided explaining how and under what circumstances the plaintiff may request the court to issue execution, attachment, or garnishment to enforce payment of the judgment. MCL 600.8409(2). See SCAO Form DCI 84, Collecting Your Money From A Small Claims Judgment.
An action to enforce a small claims judgment can be taken for six years from the date of judgment. See MCL 600.5809(3).
“After judgment, other applicable Michigan Court Rules govern actions that were brought in a small claims division.” MCR 4.301.
“[T]he district court has jurisdiction and power to make any order proper to fully effectuate the district court’s jurisdiction and judgments.” MCL 600.8315.
“The judge shall order that a judgment in the small claims division shall be satisfied by payment to the clerk or the plaintiff either in a lump sum or in installments in amounts and at times as the judge considers just and reasonable under the circumstances. The judge shall also provide for a stay of further proceedings to collect the judgment while the defendant is in compliance with the order of the court.” MCL 600.8410(2).
“The judgment shall include a warning that the defendant’s failure to pay the judgment pursuant to its terms or any installment payment ordered may result in execution against the defendant’s property and that the defendant may be compelled to appear for an examination of the defendant’s assets.” MCL 600.8410(4).
C.Execution, Attachment, or Garnishment
“For good cause shown, the judge may reinstate an installment payment judgment previously not performed or the judge may alter the amount of installment payments and the time of payment of the judgment and shall authorize execution, attachment, or garnishment to issue where it appears that the defendant has not paid according to the terms of the judgment.” MCL 600.8410(3).
“A fee of $15.00 shall be charged and collected for the issuance of a writ of execution, attachment, or garnishment and for the issuance of a judgment debtor discovery subpoena.” MCL 600.8420(2). However, if requested, this fee must be waived for indigent individuals. See MCR 2.002(A)(2); MCR 2.002(B)-(E). “Notwithstanding any other provision of [MCR 2.002], courts must enable a litigant who seeks a fee waiver to do so by an entirely electronic process.” MCR 2.002(L).
For more information on the waiver of fees, see the Michigan Judicial Institute’s Civil Proceedings Benchbook, Chapter 1.
“Whenever a judgment is rendered in any court, execution to collect the same may be issued to the sheriff, bailiff, or other proper officer of any county, district, court district or municipality of this state.” MCL 600.6001.
“Attachment or garnishment shall not issue from the small claims division prior to judgment[.]” MCL 600.8409 (emphasis added). However, “execution may issue in the manner prescribed by law and the judgment may be enforced in any other manner provided by law and not prohibited under the provisions of [Chapter 84 of the Revised Judicature Act].” MCL 600.8409(1).
MCR 4.305(C) instructs that “[a] writ of garnishment may not be issued to enforce the judgment until the expiration of 21 days after it was entered. If a judgment had been ordered to be paid by installments, an affidavit for a writ of garnishment must so state and must state that the order has been set aside or vacated.”
“A writ of garnishment issued by the small claims division of the district court remains in effect as to periodic payments as provided in [MCL 600.4012].” MCL 600.8410a.
The SCAO-approved court forms regarding garnishment can be accessed on the Michigan One Court of Justice website. For more information regarding garnishment procedures see MCL 600.6201 et seq. and MCR 3.101.
D.Failure of Defendant to Pay Judgment in Full at Time Judgment is Entered
“If the defendant is not present when the judgment is entered, or is present but does not immediately pay the full amount of the judgment when the judgment is entered, the judge shall order that the defendant, within 30 days after the date of entry of the judgment, pay the judgment in full or disclose in writing to the plaintiff and the court his or her place of employment and the location of his or her accounts in state or federally chartered banks, savings and loan associations, and credit unions.” MCL 600.8410(5).
“If the defendant fails to pay the judgment according to the terms and conditions thereof, the clerk or deputy clerk of the court, on application of the plaintiff, shall certify such judgment on a form prescribed by the supreme court.” MCL 600.8418.
E.Prevailing Party Entitled to Costs
“The prevailing party in any action in the small claims division is entitled to costs of the action and also the costs of execution upon a judgment rendered therein. The costs shall include cost of service of the notice for the appearance of the defendant.” MCL 600.8421.
“Before or at the hearing the parties may make a settlement upon those terms as they may agree. The settlement shall be in writing and signed by both parties. Upon filing of the settlement with the court, the judge shall review the settlement and may enter it as the judgment of the court or may require that a full hearing take place.” MCL 600.8410(1).
Committee Tip:
Some courts are utilizing mediation prior to the hearing in order to resolve the dispute without a hearing. District court magistrates should discuss this option with their chief judge.
Either party may appeal a district court magistrate’s decision within seven days of the decision and obtain a new trial before the district judge. MCL 600.8427. There is no further right to appeal. Id. See also Schomaker v Armour, Inc, 217 Mich App 219, 226 (1996) (holding that parties may not appeal from a small claims judgment by filing for superintending control in the circuit court because such action would undermine the purpose of the small claims division).